News

(August 30, 2016) In Announcement 2016-30, the IRS outlines specific relief that is potentially available to retirement plan participants (and their employers) adversely affected by the recent storms and flooding in Louisiana who need to take loans and/or hardship distributions from retirement savings. The essential elements of the relief seek to provide assurance to employers that "a qualified employer plan will not be treated as failing to meet any requirements under the Code or regulations merely because the plan makes a loan or a hardship distribution for a need resulting from the Louisiana Storms." The announcement goes on to stipulate that loans and/or hardship distributions can potentially be made from plans that do not currently contain enabling provisions provided the plan is amended to provide for such transactions by no later than the last day of the first plan year beginning after December 31, 2016. For more information on this relief, plan sponsors can be directed to Announcement 2016-30.